Latest News

Oil rises 2% from multi-month lows on U.S. Gulf output cuts, supply outlook


Oil rises 2% from multi-month lows on U.S. Gulf output cuts, supply outlook By Reuters

Breaking News


Commodities 27 minutes ago (Sep 28, 2022 01:05)

© Reuters. FILE PHOTO: An aerial view shows oil tanks of Transneft oil pipeline operator at the crude oil terminal Kozmino on the shore of Nakhodka Bay near the port city of Nakhodka, Russia June 13, 2022. Picture taken with a drone. REUTERS/Tatiana Meel

By Laila Kearney

NEW YORK (Reuters) -Oil prices rose over 2% on Tuesday from nine-month lows a day earlier, supported by supply curbs in the U.S. Gulf of Mexico ahead of Hurricane Ian and an easing in the U.S. dollar from its strongest level in two decades.

Prices also drew support from analyst expectations of possible supply cuts from the Organization of the Petroleum Exporting Countries and allies (OPEC+), which is to meet to set policy on Oct. 5.

Brent crude settled at $86.27 a barrel, up $2.21, or 2.6%, having fallen as low as $83.65 in the previous session, the lowest since January. U.S. West Texas Intermediate (WTI) crude settled at $78.50, up $1.79, or 2.3%.

U.S. offshore oil producers said they were keeping an eye on Hurricane Ian’s track as the powerful storm shut in about 11% of oil production in the U.S. Gulf of Mexico as it barrelled toward Florida.

The outages may only provide a momentary reprieve for oil prices, said Bob Yawger of Mizuho in New York.

“The barrels will come back pretty soon, I would imagine,” Yawger said, adding that there is a small chance the storm would change paths and force more shut-ins.

After shutting some its offshore crude production, BP (LON:BP) Plc said the storm didn’t pose a threat to its Gulf of Mexico assets and it was redeploying workers to oil platforms.

Crude prices had soared after Russia invaded Ukraine in February, with Brent in March coming close to its all-time high of $147. Recently, worries about recession, high interest rates and dollar strength have weighed.

“Oil is currently under the influence of financial forces,” said Tamas Varga of oil broker PVM.

The U.S. dollar, which eased from a 20-year high, also helped support oil. A strong dollar makes crude more expensive for buyers using other currencies. [USD/]

The oil price drop in recent months has raised speculation that OPEC+ could intervene. Iraq’s oil minister on Monday said the group was monitoring prices and did not want a sharp increase or a collapse.

“Only a production cut by OPEC+ can break the negative momentum in the short run,” said Giovanni Staunovo and Wayne Gordon of Swiss bank UBS.

U.S. crude oil in storage rose by about 4.2 million barrels for the week ended Sept. 23, according to market sources citing American Petroleum Institute figures on Tuesday.

Gasoline inventories fell by about 1 million barrels, while distillate stocks rose by about 438,000 barrels, according to the sources, who spoke on condition of anonymity. [API/S]

The report comes ahead of official Energy Information Administration data on Wednesday.

Oil rises 2% from multi-month lows on U.S. Gulf output cuts, supply outlook

Gazprom Threatens Ukraine With Non-Payment for Gas Transit in Fresh EscalationBy – Sep 27, 2022

By Geoffrey Smith — Russian gas monopoly Gazprom (MCX:GAZP) took an important step toward cutting off almost all of its remaining supplies to the EU on Tuesday, as…

Explosions heard, power out in Ukrainian city of KharkivBy Reuters – Sep 27, 2022

KHARKIV, Ukraine (Reuters) -Three explosions were heard, then electricity cut out on Tuesday in Ukraine’s second city of Kharkiv, a Reuters witness reported. “There are no lights…

Oil Inventories Rise by More Than Expected 4M Barrels Last Week: APIBy – Sep 27, 2022

By Yasin Ebrahim — U.S. crude stockpiles increased by much more than expected last week, the API reported Tuesday, just as investors up their bets on supply…

Our Apps

Terms And Conditions
Privacy Policy
Risk Warning

© 2007-2022 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

Defamation lawsuit against Fox News, Lou Dobbs can proceed to trial

Previous article

Apple Ditches iPhone Production Increase After Demand Falters

Next article

You may also like


Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News